Boston Beer (SAM) AI Stock Analysis

• Market Cap: $2.75B
• Dividend Yield: N/A
• Average Volume (3M): 225.09K
• Price to Earnings (P/E): 49.8
• Beta (1Y): 0.26
• Revenue Growth: 0.79%
• EPS Growth: -24.27%
• Country: US
• Employees: 2,537
• Sector: Consumer Defensive
• Sector Strength: 89
• Industry: Beverages - Alcoholic
• EPS (TTM): -1.68
• Shares Outstanding: 9,139,385
• 10 Day Avg. Volume: 219,984
• 30 Day Avg. Volume: 225,089
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.27
• Price to Cash Flow (P/CF): 15.30
• P/FCF Ratio: 15.30
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.67
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $264.81
• Price Target Upside: 7.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

Boston Beer scores a 71, reflecting solid financial health and strategic flexibility. Strong cash flow and low leverage provide a robust foundation, though modest revenue growth and high P/E ratio hint at potential valuation concerns. Technical indicators are mixed, offering no clear trend. Earnings call insights show revenue growth and successful product launches, but challenges in depletions and tariffs present risks. The stock buyback is a positive corporate event, highlighting confidence in the company's future prospects.

Positive Factors

Distribution Expansion

A 3x increase in distribution will provide better visibility on performance and incrementality over the coming months.

Financial Performance

SAM delivered a notable beat to revenue, gross margin and EPS, marking a good start to the year.

Growth Potential

There is a clearer path towards volume and topline growth for SAM, supported by the planned national launch of Sun Cruiser with significant advertising spend.

Negative Factors

Demographic and Health Trends

There are structural demand headwinds from demographics, health & wellness trends including GLP-1 medications, and cannabis, which have exacerbated beer category weakness.

Product Demand

Analysts are more cautious given continued weak trends for Twisted Tea, which accounts for nearly 60% of SAM's volumes in tracked channels.

Tariff Impact

SAM now estimates that announced tariffs could be a significant EPS headwind this year before mitigation efforts.

Boston Beer Business Overview & Revenue Model

Company Description

The Boston Beer Company, Inc. produces and sells alcohol beverages primarily in the United States. The company's flagship beer is Samuel Adams Boston Lager. It offers various beers, hard ciders, and hard seltzers under the Samuel Adams, Twisted Tea, Truly Hard Seltzer, Angry Orchard, Dogfish Head, Angel City, Coney Island, Concrete Beach brand names. The company markets and sells its products to a network of approximately 400 wholesalers in the United States, as well as international wholesalers, importers, or other agencies that in turn sell to retailers, such as grocery stores, club stores, convenience stores, liquor stores, bars, restaurants, stadiums, and other retail outlets. It also sells in products in Canada, Europe, Israel, Australia, New Zealand, the Caribbean, the Pacific Rim, Mexico, and Central and South America. The Boston Beer Company, Inc. was founded in 1984 and is based in Boston, Massachusetts.

How the Company Makes Money

Boston Beer Company generates revenue primarily through the sale of its wide variety of alcoholic beverages, including craft beers, hard ciders, hard seltzers, and other specialty drinks. The company's revenue streams are largely derived from wholesale distribution to retailers, bars, and restaurants across the United States and internationally. Additionally, Boston Beer benefits from direct-to-consumer sales via its own taprooms and online platforms. Strategic partnerships and collaborations with other beverage companies and brands further enhance its market presence and contribute to its revenue growth. The company invests heavily in marketing and brand promotion to drive sales and maintain customer loyalty, while its innovative approach to product development helps it capture new market trends and expand its consumer base.

Boston Beer Financial Statement Overview

Summary

Boston Beer demonstrates solid financial health across its financial statements. The company maintains a stable income statement with consistent profitability margins, a strong balance sheet with low leverage, and excellent cash flow metrics that support its operational and strategic flexibility. While revenue growth has been modest, the firm's ability to generate cash and maintain low debt levels provides a solid foundation for future growth opportunities.

Income Statement

Boston Beer has shown a stable financial performance with a consistent gross profit margin of around 44%, reflecting strong profitability in its operations. The net profit margin has improved in the TTM period to 3.4% from 2.8% in the previous year, indicating better cost management or pricing strategy. Revenue growth has been relatively flat over the last period, which could be a concern if not addressed with strategic initiatives. The EBIT and EBITDA margins have seen some fluctuations, with the TTM EBIT margin at 4.7% and EBITDA margin at 11.5%, indicating manageable operating profitability.

Balance Sheet

The company's balance sheet reflects a strong equity position with an equity ratio of approximately 72.3% in the TTM, indicative of financial stability. The debt-to-equity ratio is low at 0.052 in the TTM, suggesting low financial leverage and risk. Return on Equity (ROE) stands at 8% for the TTM, which signifies moderate returns for shareholders. The company seems to have a reliable financial footing, though improvement in asset utilization could enhance overall returns.

Cash Flow

Boston Beer's cash flow performance is robust, with a strong operating cash flow to net income ratio of 3.58 in the TTM, indicating efficient cash conversion from operations. The free cash flow to net income ratio is also healthy at 2.59, showing good cash generation after capital expenditures. Free cash flow growth has been positive, supported by stable operating cash flows and reduced capital expenditure requirements. This positions the company well for future investments or debt repayment.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.14B	2.01B	2.09B	2.06B	1.74B
	Gross Profit
893.73M	852.37M	861.99M	797.79M	814.45M
	EBIT
75.97M	100.00M	161.31M	106.35M	244.21M
	EBITDA
245.78M	209.96M	242.67M	87.13M	317.44M
	Net Income Common Stockholders
59.70M	76.25M	67.26M	14.55M	191.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
211.82M	298.49M	180.56M	26.85M	163.28M
	Total Assets
1.25B	1.43B	1.42B	1.39B	1.38B
	Total Debt
35.94M	45.27M	54.14M	61.48M	67.40M
	Net Debt
-175.88M	-253.22M	-126.42M	34.63M	-95.88M
	Total Liabilities
333.83M	352.06M	352.22M	408.17M	421.86M
	Stockholders Equity
916.19M	1.08B	1.07B	983.41M	956.97M
Cash Flow		Free Cash Flow
172.62M	201.06M	109.36M	-91.62M	113.41M
	Operating Cash Flow
248.89M	265.15M	199.94M	56.30M	253.41M
	Investing Cash Flow
-96.25M	-62.38M	-88.51M	-146.62M	-139.12M
	Financing Cash Flow
-239.31M	-84.84M	2.80M	-6.64M	12.32M

Boston Beer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 246.52
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SAM, the sentiment is Negative. The current price of 246.52 is above the 20-day moving average (MA) of 241.50, above the 50-day MA of 236.57, and below the 200-day MA of 271.53, indicating a neutral trend. The MACD of 1.37 indicates Negative momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 43.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SAM.

Boston Beer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABEV	83 Outperform	$39.85B	14.63	16.55%	5.05%	3.69%	-8.13%
BUD	74 Outperform	$129.50B	22.28	7.31%	0.99%	0.64%	10.02%
FIZZ	74 Outperform	$4.07B	21.91	40.81%	―	0.34%	9.48%
SAM	71 Outperform	$2.75B	49.80	7.36%	―	0.79%	-24.27%
TAP	68 Neutral	$11.50B	10.60	8.54%	3.15%	-0.64%	22.45%
STZ	65 Neutral	$33.55B	49.10	-0.98%	2.18%	2.47%	-105.09%
Sector *	64 Neutral	$9.24B	14.61	4.31%	185.59%	3.94%	5.78%

Boston Beer Corporate Events

Boston Beer Announces $50 Million Stock Repurchase Plan

On March 12, 2025, Jean-Michel Valette announced his decision to retire from the Board of Directors of Boston Beer Company after the 2025 Annual Meeting of Stockholders, clarifying that his departure was not due to any disagreements with the company. Additionally, on March 13, 2025, Boston Beer Company initiated a 10b5-1 plan to repurchase up to $50 million of its Class A Common Stock between March 31, 2025, and June 27, 2025, indicating a strategic move to potentially enhance shareholder value.

Boston Beer Sets New Executive Compensation Plans

Boston Beer Company, known for its alcoholic beverages, has announced executive compensation details for fiscal year 2024 and 2025. The company has set bonus targets based on performance against certain goals such as depletions growth, EBIT targets, and cost savings. In 2024, the company achieved 90% on its bonus scale, leading to approved bonuses for its executives. For 2025, the company has set new salary and bonus targets, with the Compensation Committee approving increased base salaries and long-term equity awards, including restricted stock units (RSUs) and option awards, for its Named Executive Officers (NEOs). Vesting of these awards is contingent upon continued employment and performance-based criteria related to revenue growth.